Why are prices in stores like Costco and Sam’s Club much cheaper than your average grocery store?
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Part of the price for an item is the cost to sell it. These stores have lower prices because their cost to sell what they sell is lower. Why?
They carry less items, force you to buy larger portions (items cost $10+), they charge membership fees which somewhat deters shoplifters since just to enter you may need to pay $100 (or whatever) annual membership, they have fewer locations, each location is bigger, they turn over stock rapidly, they buy in bulk and may have monopsony pricing power, if you return too many items they cancel your membership to limit abuse, …
Many factors like that allow them to have lower prices and better return policies yet still make reasonable profits on top.
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